Egyptian business executives reportedly ordered weapons worth $23 million from North Korea for the Egyptian army in an illicit arrangement, according to a report published by The Washington Post on Monday.
The report also said that the deal was foiled by United States intelligence services in time. The weapons agreement reportedly promoted the United Nations to launch an investigation and a series of US complaints over Egypt's attempt to defy sanctions.
The report described global arms trade as a "vital financial lifeline" for North Korea's leader, Kim Jong Un.
UN has imposed several sanctions on North Korea to curb its burgeoning nuclear weapons programme. Under the sanctions, most members of the inter-governmental organisation vowed to cease trading with Pyongyang.
The trade by Egyptian businessmen was foiled after US intelligence officials spotted a rusty freighter flying Cambodian colours going toward the Suez Canal. The officials then sent a message from Washington to Cairo and warned about the ship's North Korean origin and crew. They also reportedly said that the mysterious cargo was hidden by bulky tarps.
Reports state that when the customs officials searched the vessel after it arrived in Egyptian waters, they found a stock of over rocket-propelled grenades hidden under bins of iron ore.
The UN report described the deal as "largest seizure of ammunition in the history of sanctions" against North Korea.
US officials also said that Washington had to force Cairo to thwart the shipment deal by alerting authorities through diplomatic channels. However, the Egyptian Embassy in Washington, in the country's defence, claimed that it had cooperated with the UN by detecting and destroying the arms and abiding by the sanctions.
After the UN report, the Donald Trump administration reportedly decided in July to withhold $290 in military aid cut out for Egypt over its military deals with North Korea.
After North's latest missile launch and the sixth nuclear test, the US had suggested that its patience for diplomacy with Pyongyang was running out. With North Korea's growing nuclear programme, unbridled missile tests, and the US' threats of military action, a highly plausible prospect of a nuclear war looms over the world.
